Activities of multinational companies in Hanoi

The attraction for TNCs is not only in the investment environment created, but also in having capable businesses, a trustworthy place for them to invest their capital in production and business. Therefore, there needs to be a common combination between the state and businesses.

The State needs to build and perfect the legal system, policies, and strategies to create an open investment environment, a favorable "playground" that both stimulates domestic enterprises to strive to grow and attracts investment from TNCs in priority areas according to the State's orientation. Enterprises need to strive and improve, improve their production and business organization capacity, enhance their competitiveness and become potential partners, with equal status, not falling into a passive, disadvantaged and dependent position in the negotiation and cooperation relationship with TNCs, striving to gradually invest abroad, and implement transnationalization in business. It is domestic enterprises that must turn the State's efforts into reality. The rise of domestic enterprises to have equal relations with TNCs will make the economy develop independently and autonomously, without dependence on foreign countries. The State not only needs to create an open investment environment, but also be the protector of the interests of enterprises, on that basis protecting the interests of the nation and people. The joint efforts of the State and enterprises are the efforts to strive for the development of the country, for the goal of a rich people, a strong country, a fair, democratic and civilized society.

Third , perfect and innovate the management mechanism and organization to enhance the state's macro-management capacity.

The management mechanism and management capacity of the state play a decisive role in creating an investment environment. Because all investment activities are directly related to the direct management and operation mechanism of the host country, transnational companies must work directly with the management apparatus at all levels. With an increasingly complete management mechanism, implemented by a strong management apparatus, it will create trust from TNCs in the stability and openness of the investment environment. On the contrary, if the management mechanism is not complete and

To fully promote its role, a weak state management apparatus will be a major obstacle to the goal of attracting investment, especially investment from transnational companies. TNCs are products of the modern economy, operating internationally according to international rules, practices and institutions. When investing in any country, they need a similar investment environment to operate. Therefore, countries that want to attract foreign investment need to pay attention to building and perfecting their management mechanisms and state apparatus to both increase investment attractiveness and manage foreign investment activities in the most effective way.

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Over the years, our State has made progress in the work.

Managing the country in general and in managing foreign investment activities in particular.

The investment management mechanism is becoming more and more open. However, this innovation has not kept up with the requirements of the country's socio-economic development. There are still many obstacles in the field of foreign investment management. Therefore, innovation of the management mechanism and improvement of the state's management capacity are urgent issues today.

Innovation in management mechanisms is to create an attractive playground for multinational companies. Our country's market economy operating under a market mechanism with state management in recent years has created more momentum for development, arousing the dynamism of the economy. We are gradually shifting from a primitive market economy to a modern market economy and international integration, it is necessary to further improve the market mechanism with state management. That is to create conditions to promote the regulatory effectiveness of the market mechanism, develop a synchronous market, ensure the smooth movement of capital, technology, and labor factors of the market. The state's management role is implemented through state regulatory activities of the market. For a special investment market, it is necessary to attract foreign investors, especially multinational companies, and manage their activities, so there must be flexibility and intelligence in regulation. This can only be done

when we have a consistent legal framework, appropriate management mechanisms and a competent management apparatus.

The Law on Foreign Investment in Vietnam can be considered an open investment law, however, there are still many sub-law documents that overlap and contradict each other. Therefore, it is necessary to quickly review, eliminate, supplement and amend laws, regulations and legal institutions to be implemented more effectively. In addition, it is necessary to simplify administrative procedures, strengthen supervision, strictly and promptly handle violations of the law; improve and enhance the management capacity of the state apparatus, especially the state management apparatus on

Investment is an urgent issue today.

Our country's investment management apparatus in recent years has gradually

improved, but there are still many limitations and loopholes in the process of receiving and evaluating

determining, reviewing, granting registration licenses, post-license procedures and investment management activities. In the coming time, the construction of the investment management apparatus needs to be improved in the direction of streamlining and compactness but ensuring the improvement of the operational capacity of this apparatus. Implement the principle of one-stop shop, one contact point for the entire process from reception to granting investment licenses. Strengthen inspection and supervision of investment progress to promptly support adjustment of activities.

investment when necessary. Decentralization, investment licensing and operation management

Investment is necessary, but there needs to be a mechanism for coordination and control of plans from a central agency, the Ministry of Planning and Investment, to ensure unified management, limit negative factors and unhealthy competition. Strengthen information and consultation work, take advantage of the achievements of the scientific and technological revolution in the world, update information, and grasp the operating situation of TNCs in Hanoi to make timely and unified management decisions. Improve the professional capacity and quality of the staff in the foreign investment management apparatus as well as the staff working directly with TNCs.

Fourth, develop technical infrastructure

Technical infrastructure is considered a “skeleton” system of the economy to attract and receive investment from TNCs. In terms of production and

receive the current market. The development of economic and technical infrastructure is a prerequisite for the development of high technology, quickly meeting the demands of the market. With a relatively complete and modern infrastructure of transportation, communications, services, trade, culture, education, information and institutions operating the economy will

ensure that TNCs can move capital quickly, respond promptly to rapid fluctuations in market factors, and avoid direct costs caused by poor physical infrastructure. Therefore, TNCs often give priority to investing in places with synchronous and modern physical infrastructure.

Although the capital's physical infrastructure has been invested and developed, it is still in a weak state, lacking synchronization, and not suitable for investment activities of TNCs. The investment requirement for developing Hanoi's technical physical infrastructure is very urgent. However, investing in developing a modern, synchronous infrastructure requires huge amounts of capital and technology, capital circulation is poor, profits are not high, and the private sector is not interested in investing in infrastructure.

capable of investing and also unwilling to invest in this field, so the state must shoulder the burden. The state's financial potential, although enormous, cannot be fully invested in building a synchronous and comprehensive infrastructure. Therefore,

requires flexible solutions to both receive foreign investment and

ensure its normal financial operations.

In the current conditions of our country, one of the prominent contradictions is that the physical infrastructure has not yet developed but the economic potential does not allow for large investments in this field. The appropriate solution now is: Try to resolve well the economic and political relations with countries, non-governmental organizations and international economic organizations to get official development assistance to invest in infrastructure construction projects. In addition, there must be long-term, medium-term and short-term plans to mobilize

mobilizing the potential of the entire population for building and developing infrastructure

Technical infrastructure. In the coming time, to develop the technical infrastructure of the capital, it is necessary to pay attention to the following points:

- Infrastructure construction projects must be essential projects, with wide-ranging effects in many sectors and fields, and are key to the overall development of Hanoi.

- There should be policies to encourage domestic investors to invest capital.

to build small and medium scale.

“Software infrastructure” such as the service system, trade, culture, education and economic operating institutions still have many shortcomings. The quality of service activities is not high, low efficiency. Trade and tourism activities are weak in terms of facilities, conditions and methods of operation. Weaknesses in marketing capacity, market research, economic information, etc. have caused many difficulties for production and business activities. Culture, education and health have developed but are not on par with the times.

greatly affects the improvement of labor quality; has caused significant obstacles in the field of attracting foreign investment, reducing attractiveness for multinational corporations.

+ To improve the quality of activities in the fields of services, trade, culture, education, our country needs to pay attention to building political and economic institutions in the direction of encouraging and attracting foreign investment. Pay more attention to education. Strengthen political and ideological education and law to raise the political and ideological awareness of workers, promote their civil and democratic rights. Enhance the role of economic leverage of financial and monetary instruments by sanitizing this system. Commercial, information and consulting services must be innovated and developed to ensure the necessary conditions.

to facilitate the investment activities of TNCs

Fifth, enhance the competitiveness of domestic enterprises in Hanoi.

A domestic investment partner with capacity and knowledge of doing business with foreign countries is an attractive factor for TNCs. In addition to market research,

socio-political situation, foreign investors in general are very interested

to finding investment partners, because when investing in a country they often encounter difficulties such as customs, practices, laws... on the other hand, in business cooperation, investors all want to reduce capital to limit risks, so multinational companies often look for partners who are citizens of the host country, to reduce difficulties and share risks if any.

Practices over the years have shown that in the capital Hanoi, in joint ventures with foreign countries, if the Vietnamese partner is capable and has contributed, it often attracts more foreign investment capital, expands investment projects, is not oppressed by foreign partners and has learned to improve itself. On the contrary, the scale is narrowed, the investment form must be changed or the license must be revoked. In order to effectively establish domestic companies to carry out joint ventures and cooperate in investment with TNCs, we need to build and develop appropriate domestic investment partners in economic relations with foreign partners, including TNCs operating in Hanoi. We need to continue to consolidate and develop enterprises, build strong economic groups, encourage investment development in all economic sectors and improve the production and business capacity of enterprises. The State needs to have policies to encourage, support and help them to become strong enterprises that can carry out joint ventures and partnerships with TNCs.

With the support of the state, enterprises must make great efforts and strive to improve. That is demonstrated by the will and determination to innovate the management mechanism.

Be autonomous, dynamic and creative in production and business activities to become worthy partners and effective joint ventures with TNCs.

Sixth, strengthen human resource development .

Human resource development is an urgent task to improve labor quality, ensure the sustainability of economic development, and at the same time create

conditions to increase the attractiveness of TNCs.

With a team of skilled workers, technical workers, capable entrepreneurs, and good management experts, it will be very convenient for multinational companies to carry out joint ventures. High-quality human resources ensure the acquisition of new technology, mastery of techniques and technological processes, which will help TNCs use local labor and implement advanced labor deployment. For us, one of the risks we have to face is

The first risk today is the risk of falling behind, in which falling behind in education and training is the most dangerous and will cost the most if there is no effort to overcome it. In international cooperation, the comparative advantage will belong to the country that has a highly educated workforce, the ability to master new technology and has professional skills suitable to the requirements of new industries. Currently, our country

There is a shortage of skilled workers, technical workers, a team of businesses that are proficient in doing business in the market mechanism and a team of highly qualified management experts. Especially for expanding and strengthening investment cooperation with TNCs, the shortage is getting bigger and bigger.

From the above reality, to develop human resources for both the immediate and long term, education and training work in our country must have specific strategies and plans, in line with the development requirements of the country, considering education as a top national policy.

as our Party and State have proposed.

Human resource development is also a solution to ensure the sustainability of economic development, while also creating conditions to increase the attractiveness of FDI attraction of TNCs. Therefore, it is necessary to implement well the following contents:

* Thoroughly reform education, develop high-quality human resources: People must know how to self-train, always acquire new knowledge, have creative ability, and constantly innovate their thinking and working methods to be able to adapt to and master the knowledge economy. Education contributes to the creation of knowledge.

At the same time, it contributes to the dissemination of knowledge. Therefore, people consider education as the most basic production sector in the knowledge economy. For education to truly be a top national policy, the state must first have a policy of valuing talents, truly considering talents as the national spirit. Create favorable working conditions,

Promote the capacity of talented and leading cadres in the fields of science, technology, and business management. Accelerate secondary education, increase the average number of years in the working age to 12 years by 2020. Thoroughly and deeply reform both the objectives, content and teaching methods. Shift from the traditional education model to the new education model.

* Make appropriate investments in training and improving the staff and workers working in the FDI sector : Develop regulations for Vietnamese staff to participate in the board of directors and participate in the management of joint ventures. Take advantage of all funding sources from countries, international organizations, and non-governmental organizations to send staff to study abroad and establish large research centers in the capital Hanoi. Have a satisfactory remuneration mechanism and staff utilization methods to mobilize the high technical potential and intellectual labor of the team of scientists, experts, and intellectuals. Promote and create conditions for workers to improve their skills.

* Narrowing the gap between business requirements and school training . In the current open economic conditions, the younger generation is progressing faster than the previous generation; most of them know how to use information technology and computers proficiently. This has met the recruitment needs of businesses. However, TNCs often consider experience as a condition for

be recruited. For new graduates, this is a difficult condition to meet. Therefore, the most common form of training support to help students gain work experience is to create conditions for them to practice and intern at businesses to help them consolidate and supplement the knowledge they have learned.

* Strengthen administrative, economic and educational measures, and encourage

To improve work ethics and attitudes : Workers in our country have not been equipped with knowledge and skills to work in groups, and are afraid to promote personal initiatives and share work experiences. Many businesses, especially small and medium-sized enterprises,

Foreign invested enterprises have had to spend months just to train

Activities of multinational companies in Hanoi - 10

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